REG - Southern Energy Corp - SUCCESSFUL AMENDMENT TO CREDIT FACILITY

Southern EnergyAnnouncement

02/10/2023 07:00

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RNS Number : 2682O  Southern Energy Corp.  02 October 2023

 

SOUTHERN ENERGY CORP. ANNOUNCES

SUCCESSFUL AMENDMENT TO CREDIT FACILITY

 

 

Calgary, Alberta - October 2, 2023 - Southern Energy Corp. ("Southern" or the
"Company") (TSXV:SOU) (AIM:SOUC) (OTCQX:SOUTF) is pleased to announce the
execution of the fifth amendment ("Fifth Amendment") to the existing senior
secured term loan (the "Credit Facility").

 

The Fifth Amendment includes the extension of the Tranche B availability to
August 31, 2025, and a US$2.0 million increase to the Tranche B commitment for
a total Tranche B commitment of US$31.5 million. Southern will have
approximately US$11.5 million of capacity remaining on the Credit Facility
upon execution of the Fifth Amendment with a current outstanding balance of
approximately US$17.6 million. The amendment also extends the principal
amortization period by an additional twelve months while maintaining the
existing 12% per annum coupon, resets the debt service coverage ratio covenant
calculation to an annualized basis beginning in Q4 2023 and allows for
repayment and reborrowing under the Tranche B facility.

 

In connection with the Fifth Amendment, the Company has agreed to extend the
term of 3,906,250 outstanding common share purchase warrants ("Bonus
Warrants") previously issued to the lender from April 30, 2024 until August
31, 2025.  The extension of the term of the Bonus Warrants remains subject to
the final approval of the TSX Venture Exchange.

 

Calvin Yau, Chief Financial Officer of Southern, commented:

"The amendments to the credit facility from our existing credit provider
provides additional flexibility and credit capacity to support our strategy to
grow both inorganically and organically with long-term development operations
in the Gwinville Field to maximize leveraged returns for shareholders."

 

 

For further information, please contact:

 Southern Energy Corp.

 Ian Atkinson (President and CEO)                           +1 587 287 5401

 Calvin Yau (CFO)                                           +1 587 287 5402

 Strand Hanson Limited - Nominated & Financial Adviser      +44 (0) 20 7409 3494

 James Spinney / James Bellman

 Canaccord Genuity - Joint Broker                           +44 (0) 20 7523 8000

 Henry Fitzgerald-O'Connor / James Asensio
 Stifel Nicolaus Europe Limited - Joint Broker              +44 (0) 20 7710 7600

 Callum Stewart / Ashton Clanfield

 Tennyson Securities - Joint Broker                         +44 (0) 20 7186 9033

 Peter Krens / Pav Sanghera

 Camarco                                                    +44 (0) 20 3757 4980

 Owen Roberts / Billy Clegg / Hugo Liddy

 

 

About Southern Energy Corp.

Southern Energy Corp. is a natural gas exploration and production company.
Southern has a primary focus on acquiring and developing conventional natural
gas and light oil resources in the southeast Gulf States of Mississippi,
Louisiana, and East Texas. Our management team has a long and successful
history working together and have created significant shareholder value
through accretive acquisitions, optimization of existing oil and natural gas
fields and the utilization of re-development strategies utilizing horizontal
drilling and multi-staged fracture completion techniques.

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

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